Canada invests to strengthen domestic critical minerals value chain

OTTAWA — Budget 2022 proposed $1.5 billion in targeted funds available through the Strategic Innovation Fund (SIF) aimed at accelerating investments in critical minerals projects. François-Philippe Champagne, Minister of Innovation, Science and Industry, and Jonathan Wilkinson, Minister of Natural Resources, released criteria for those projects eligible for the fund.

Qualifying projects must focus on critical mineral processing, manufacturing and recycling; however, mining projects that show exceptional innovation benefits and strong vertical integration to grow domestic value chains will be considered.

These future projects have to meet specific criteria and target one or more of the 31 minerals Canada has identified as “critical,” with priority given to the six most significant minerals: lithium, graphite, nickel, cobalt, copper and rare earth elements. Critical minerals projects selected for investment will be expected to contribute to a more sustainable and competitive economy with a particular focus on the following sectors: clean technologies, including renewable energy sources, information and communications technology, and inputs to advanced manufacturing. Priority will be given to advanced-stage projects capable of demonstrating significant financial and technical readiness.

Implementation of the Canadian Critical Minerals Strategy is being coordinated through the Critical Minerals Centre of Excellence at Natural Resources Canada, in collaboration with other federal departments and agencies, provincial and territorial partners, Indigenous communities and industry stakeholders.

Investments made to date through the Strategic Innovation Fund include a $27 million contribution to E3 Lithium Ltd. in Calgary, Alberta, for the direct extraction of lithium from brines and a $222 million investment to support Rio Tinto Fer et Titane in Sorel-Tracy, Quebec, in producing critical minerals like titanium and scandium and decarbonizing operations through innovative smelting technology.

“Canada has everything it takes to be a leading force in critical minerals processing, manufacturing and recycling,” said François-Philippe Champagne, Minister of Innovation, Science and Industry. “We already have a growing assortment of key innovative projects that are being developed right here in Canada that will allow us to build a stronger domestic critical minerals ecosystem. And through strategic investments, our government is ensuring that Canada can be a leader in this growing global industry, which will create well-paying jobs across the country, especially in rural, remote and Indigenous communities.”